A Preferred Share Primer

When I talk about dividend stocks here at Money and Markets, I almost always mean common shares of a company.

But today I want to tell you about another class of stock that some income investors gravitate toward: “Preferred” shares.

As the name suggests, preferred stock gives its owner a leg up on common shareholders, especially when it comes to dividends.

Preferred shareholders may receive larger payments, and companies are required to pay these dividends before distributions are made to common shareholders.

This DOES NOT mean the dividend is guaranteed. It simply means that when it comes down to the wire,…

Warren Buffett Looking For Bargain Prices Despite 2008 Setback

Famed investor Warren Buffett didn’t fare much better than anybody else in 2008. But the Oracle of Omaha remains optimistic, convinced that investors who brave today’s fierce financial tempest will be rewarded in the long run.

“I’ve been buying American stocks,” Buffett said in an editorial in The New York Times. “This is my personal account I’m talking about, in which I previously owned nothing but United States government bonds… If prices keep looking attractive, my non-Berkshire net worth will soon be 100% in United States equities.”

As the world’s richest man, Buffett offers a kind of comfort that few others can.  And…

Cashing in on Desperation

“This level of undervaluation represents what we believe is a very rare opportunity—one we have never witnessed in more than 30 years of managing convertible portfolios.”

That’s what Nick Calamos recently said about convertible bonds.  

And who better to know we’re looking at “a very rare opportunity” in convertible bonds?

Calamos is Co Chief Investment Officer of Calamos Investments which manages about $23.8 billion in assets with a big chunk of them in convertible bonds. The New York Times calls Calamos “one of the most sought-after fund managers in the country…after developing an expertise in convertible bonds.”

Calamos clearly knows what…

Buffett’s $40 Billion Bet on Volatility

By Andrew Mickey, Q1 Publishing

Warren Buffett’s track record is unmatched. His recent bullishness on stocks has been unmatched as well. Over the past few weeks, the market has made him pay for being bullish in a bear market.

Whether it’s justified or not, Berkshire Hathaway (NYSE:BRK-A) has finally started to get hit by the sell-off. Yesterday, shares of Buffett’s holding company slid 11% and fell another 12% in early morning trading this morning. The most cited reason from the slide was nervousness over Buffett’s recent $40 billion gamble.

You see, Buffett’s not just buying stocks he likes when they’re undervalued. He’s doing…

General Electric to Raise “At Least” $15 Billion Via Stock Sale, Investment From Warren Buffett’s Berkshire Hathaway

General Electric Co. (GE) said yesterday (Wednesday) that it will sell "at least" $12 billion in common shares to investors, and another $3 billion in preferred stock to Warren Buffett’s Berkshire Hathaway Inc. (BRK.A, BRK.B), making GE the latest U.S. giant that’s been forced to raise capital in recent weeks.

The moves come as the conglomerate – whose GE Capital finance arm generates nearly half the company’s revenue – has effectively seen itself reclassified as a financial-sector stock because of investor worries concerning GE’s financing businesses. As a result, GE shares have been pounded.

Until last week, however, GE leaders had repeatedly maintained the…